Slate Asset Management makes USD2.33bn portfolio and platform acquisition from Annaly Capital Management

Slate Asset Management (Slate), an alternative asset management platform with a focus on real estate, has acquired the Commercial Real Estate Business (ACREG) of Annaly Capital Management (Annaly) for USD2.33 billion.

The acquisition includes a portfolio of performing real estate loans, debt securities and real estate equity positions. Members of the ACREG team will be joining Slate upon closing of the transaction.

"We believe this transaction is another example of Slate's ability to find value for our partners and investors at an opportune time in the market cycle," says Blair Welch, co-founding partner of Slate. "The acquisition of this platform further expands Slate's core capabilities across the real estate capital stack. Combined with our investment platform, sophistication, institutional relationships and operational expertise, we are uniquely positioned to provide creative debt capital solutions in the current market environment. Additionally, we are very excited to have the ACREG team members join us at Slate."
 
The acquisition from Annaly also includes a USD0.4 billion portfolio of grocery-anchored real estate assets located in major US markets that will be purchased by Slate Grocery REIT (TSX: SGR.UN / SGR.U), Slate's pure-play U.S. grocery-anchored business.
 
The transaction is subject to customary closing conditions, including applicable regulatory approvals. The closing is expected to be complete by the middle of 2021.
 
BMO Capital Markets is serving as financial advisor and Goodwin Procter LLP and McCarthy Tétrault LLP as legal advisors to Slate. Evercore is serving as financial advisor and Ropes & Gray LLP as legal advisor to Annaly.